CONFIDENTIAL

action to align the Colonial Regulations with the Basic Law on

this point and that since Colonial Regulations will cease to apply on 1 July 1997, there was no need for consultation with

China first.

8. We should not be under any illusions that the Chinese will

be hoodwinked by this. The local staff associations will anyway kick up a fuss. But there are no easy options, and I

recommend that we suggest the above as an approach for HKG to

consider. We might also suggest that once it became known

that HKG were considering a change in policy and if there was

an outcry from the Chinese, one option would be to pass the

ball to a suitable body to review the policy (focusing on its

relevance to present circumstances rather than the BOR angle)

and to put forward recommendations. Possibilities include the

Public Service Commission or (more sensitive with the Chinese)

a LegCo Select Committee or the LegCo Public Service Panel.

This option might buy time and delay the issue coming to a head until after we have completed discussions with the Chinese on the 1994/95 election arrangements.

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PF Ricketts

This

very

tricky, but I

will lose

agree. Amming (as we and) that we

(realisation policy,

cut case and will have to change the

arblems with the Chris. Om preferred ston any option will cave would at least make it move hilbelt for the Chrise to m

Masha

On bilt 1 Rights

as well as

the change in pling.

CONFIDENTIAL

Cloten "s

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